Gold prices edged lower on Wednesday as the US dollar gained strength, with markets closely watching US President Donald Trump's upcoming reciprocal tariffs amid fears of rising inflation and slower economic growth.

Spot gold fell 0.1% to US$3,017.49 an ounce as of 0535 GMT, while US gold futures slipped 0.2% to US$3,021.30.

"Prices are now trapped in a sideways range due to uncertainty on how the planned 2 April US reciprocal tariffs are going to be implemented," said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA. He noted that dollar strength was pressuring gold prices.

Trump's tariff policies have raised concerns about inflation and economic slowdown, potentially worsening trade tensions.

"There are real concerns around US economic growth as well as inflation. The US is likely to face a stagflationary scenario, and that could support prices," said Soni Kumari, a commodity strategist at ANZ.

Gold, often seen as a hedge against economic and geopolitical risks, has gained 15% so far this year, reaching a record high of US$3,057.21 on 20 March.

Meanwhile, US consumer confidence has plunged to its lowest level in over four years, as households fear a recession and rising inflation driven by tariffs.

Traders are also awaiting remarks from several Federal Reserve officials later in the day, as well as US personal consumption expenditures data on Friday, for clues on the central bank's monetary policy stance.

"We are forecasting US$3,200 by September," said ANZ's Kumari, adding that hawkish signals from the Fed could slow gold's rally.

In other metals, spot silver dropped 0.5% to US$33.57 an ounce, platinum fell 0.5% to US$971.35, and palladium slipped 0.5% to US$951.23.